Eight new sectors formed from IA Global and Specialist sectors

Notes to Editors:

Definitions of new sectors:

Latin America

Funds which invest at least 80% of their assets in Latin American equities.

Specific sector notes:

1. Latin America is defined as those countries included in recognised indices
2. Funds are expected to be diversified. Single country funds will be included in the Specialist sector.

India/Indian Subcontinent

Funds which invest at least 80% of their assets in equities of India/the Indian sub-continent. Funds may invest solely in India or be diversified across the sub-continent.

Specific sector notes:

1. Funds that invest solely in Sri Lanka, Pakistan or Bangladesh with the intention to gain specific exposure to these countries will be included in the Specialist sector.

Global Smaller Companies

Funds which invest at least 80% of their assets in the equities of companies that form the bottom 15% of market capitalisation in each country comprising the global market.

Specific sector notes:

1. Funds are expected to be diversified globally and may invest in developed or developed and emerging markets.
2. If funds invest solely in Emerging Market smaller companies, they will be classified to the Global Emerging Markets sector.

Financials and Financial Innovation

Funds that invest at least 80% of their assets in equities of financial services companies and related sectors including industries such as banking, insurance, capital markets, fintech and consumer finance in any country.

Some funds in the sector may have a specific focus such as an industry focus (e.g. insurance, money management), country focus (e.g. US) or thematic focus (e.g. fintech). These funds may exhibit different characteristics to diversified financial funds, and investors should take extra care when making comparisons.

Specific sector notes:

1. Funds may invest in Mortgage REITs as part of the core allocation.
2. Funds may invest in fintech. Investors should read individual fund’s literature to understand the manager’s definition of fintech.
3. Funds may be focused on one part of the financial services industry, for example, just banks, insurers or fintech.

Healthcare

Funds that invest at least 80% of their assets in equities of companies that operate in sectors related to healthcare including industries such as pharmaceuticals, healthcare equipment and services in any country.

Funds should be diversified across healthcare sectors; some funds may have a thematic approach (e.g. healthcare innovation). 

Specific sector notes:

1. Funds focused solely on biotechnology or life sciences will be classified to the Specialist sector.

Infrastructure

Funds that invest at least 80% of their assets (directly or indirectly) in companies involved in the ownership, operation or maintenance of infrastructure assets (including but not limited to: utilities, energy, transport, health, education, security, communications).

Specific sector notes:

1. It is expected that funds will invest primarily in equities, but debt securities and property (which may take the form of REITs) may also contribute to the core 80%.
2. Funds may be diversified by region or sector or may have a specific focus. Investors should conduct their own due diligence on what is included in a portfolio to satisfy themselves that a fund meets their needs. Owing to the diversity of approaches, all performance comparisons should be conducted with additional care.

Gold and Precious Metals

Funds that invest at least 80% of their assets in precious metal related securities (mining shares).

Specific sector notes:

1. It is expected that funds will invest principally in mining shares. Funds may invest in companies mining Gold, Silver, Platinum and other precious metals. Some may own small amounts of gold/silver bullion securities.
2. Investors should conduct their own due diligence on what is included in a portfolio to satisfy themselves that a fund meets their needs. Owing to the diversity of approaches, all performance comparisons should be conducted with additional care.

Commodities and Natural Resources

Funds that invest at least 80% of their assets in commodity or natural resources related equities.

Specific sector notes:

1. Funds may be diversified and offer broad exposure to commodities and natural resources, others may focus on specific industries/sectors.
2. Investors should conduct their own due diligence. Owing to the diversity of approaches, like for like performance comparisons are inappropriate.

For further information, please contact:

Katie Martin, Head of Communications: [email protected]

T: +44 (0)20 7269 4655

Helen Ayres, Communications Manager: [email protected] 

T: +44 (0)20 7269 4620IA press office: [email protected]

T: 020 7269 4696

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